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Cruise lines nearing an inflection point: Barclays

Yahoo Finance's Akiko Fujita and Sibile Marcellus discuss how Barclays upgraded cruise stocks, boosting the sector, after months of pressure due to the coronavirus.

Video Transcript

AKIKO FUJITA: Well, it's been a choppy year for major cruise liners, the sector among the hardest hit in the pandemic. But those stocks today getting a big lift on a bullish call from Barclays. And Norwegian leading the way, up more than 11% today. Sibile Marcellus is here to break down that note for us. Sibile.

SIBILE MARCELLUS: That's right. So it's been a while since most Americans have been able to enjoy a cruise. That's because the CDC has a no sale order in effect right now through September 30 for cruise ships. But Barclays is actually getting more bullish on those stocks. So the stocks in particular that they're talking about are Royal Caribbean, Norwegian Cruise Line Holdings and Carnival.

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And what Barclays' analysts are doing, they're actually upgrading those stocks from overweight to equal weight. And I looked at how those stocks are faring today on that news. And they're all in the green. Royal Caribbean, up nearly 7%. Norwegian Cruise Line Holdings, up 11%. And Carnival, up 8%.

Now what these analysts from Barclays are arguing is that the CDC will likely extend the no sale order beyond that September 30th date. But eventually, they will lift it. So what they want is for investors to be positioned to be able to capitalize on that once the CDC lifts that no sale order.

AKIKO FUJITA: OK. Thanks so much for that Sibile. No question, a lot of people looking ahead to potential travels once things start to calm down at least for the virus.